Graphite India Limited Vs State of Bihar (Patna High Court)
Summary: The Patna High Court considered whether an assessee could claim a cash refund of Input Tax Credit (ITC) accrued under the erstwhile Bihar Value Added Tax regime but not claimed for carry forward in Form GSTR TRAN-1 after implementation of the Goods and Services Tax regime.
The petitioner, M/s Graphite India Limited, was an assessee under the Bihar Value Added Tax Act, 2005 and subsequently became an assessee under the CGST Act, 2017. During the VAT period, the petitioner claimed total ITC of Rs.1,88,60,453.42/-. Upon introduction of GST with effect from 01.07.2017, the transitional provisions permitted eligible ITC under the earlier regime to be carried forward for utilisation under GST.
The petitioner filed its VAT returns and sought carry forward of ITC through Form GSTR TRAN-1. However, it claimed only Rs.1,68,78,801/-. The balance amount of Rs.19,81,652/- was admittedly not claimed because the petitioner did not possess the statutory forms necessary to substantiate that portion of the claim at that point in time.
Subsequently, the assessment was completed and the Assessing Officer allowed the entire ITC claim, including the additional Rs.19,81,652/-. When the petitioner sought a refund of this additional amount, the claim was rejected.
